SH Dividend Type Payments

ProShares Short S&P500 dividend

Although SH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short S&P500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

ProShares Short S&P500 (SH)
Bid Ask Last Change Volume P/E Market Cap
41.30 41.31 41.31 -0.39 6.2M - 1.4B

SH Dividend-Like Income Using Covered Calls

With SH at 41.31, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.24 0.3
5% 2.07 0.6
10% 4.13 1.1

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 42.00 0.75 71 1.1 0.69 (1.7%)
Jul 18 42.00 0.45 43 1.0 0.69 (1.7%)
5% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 42.00 0.75 71 1.1 0.69 (1.7%)
Jul 18 42.00 0.45 43 1.0 0.69 (1.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jun 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.APP dividend
2.SPY dividend 7.EEM dividend   2.APLD dividend
3.SLV dividend 8.TSLA dividend   3.SFIX dividend
4.QQQ dividend 9.FXI dividend   4.ALT dividend
5.GLD dividend 10.TLT dividend   5.SERV dividend

Want more examples? SGU Dividend | SHAK Dividend